Restoring standards and honor to the Detroit Hardship Panel

Michigan and our country are facing an economic crisis; it is a time in which everyone could use some relief to the current conditions.. We are still in the midst of a foreclosure epidemic and Michigan citizens, both the employed and the unemployed, are scrambling to save their homes. In these challenging times, we need our government officials to ensure that government programs are properly servicing our community’s..

The Detroit Hardship Panel was created to provide financial assistance to citizens who are in a position of losing their homes due to financial hardship. Last summer it became apparent that there were severe problems regarding who the panel had chosen to receive this financial assistance. It was discovered that the members of the panel were seriously misusing the power when it came to approving applicants. It is time that honor and standards are brought back to our local government and ensure that this panel performs its service as it was originally intended.

The Hardship Panel is designed to grant financial support to property owners whose incomes fall below the federal poverty guidelines and who have assets of $5,000 or less. The nine committee members are responsible for approving financial support to homeowners for the purpose of helping families remain in their homes. Unfortunately, it has become evident that several committee members have been repeatedly waiving or ignoring the guidelines for approving applicants, and have awarded thousands of dollars in tax exemptions to seemingly well-to-do homeowners.

Many of the individuals who have received financial support through the Hardship Panel own luxury vehicles, did not live at the homes for which they received tax breaks, and own more than one house. A few of the applicants who wrongfully received financial support were close acquaintances with the committee members. These are clearly people who do not need financial help, but are receiving it due to a lack of oversight and investigation within the panel. The panel members themselves also had questionable finances as some have been sued for fraud or filed for bankruptcy.. We cannot afford to let any mismanaged government program continue when families are losing there homes and could benefit from such financial assistance.

This situation clearly cannot continue. If our city wants to attract new businesses and families then we have to be a city where our government officials act honorably and uphold our laws and policies. This kind of integrity will be just as attractive to businesses, economic development, and families as tax breaks and other financial incentives.

Because I strongly believe that we have to improve our city by addressing any irregularities, I will be introducing legislation calling for increased regulation of the city’s Hardship Panel. Through my legislation, I aim to oversee the functioning of the panel by creating penalties for false applications, and establishing conflict-of-interest provision, I also plan to include proposals specifically designed to establish a five-year “look back” to recoup taxes from those who received financial help under false circumstances.

When conducted honorably, programs such as the Detroit Hardship Panel can help many citizens in financial need.. This is what government should be doing, especially in such dire economic times. While the majority of claims submitted are justifiable, the claims most people remember—and those which make the biggest impression on people—are the tainted ones. When citizens take advantage of these opportunities and committee members look the other way, the programs become less effective than we need them to be. By taking strong action to address these problems I hope to restore integrity to the panel. Strict standards will help us ensure that this much needed financial support is only going to those who need it.